What's a Stock Split? Why Do Companies Split their Stocks? | INDmoney Classroom #10

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what is a stock split? why do companies split their stocks?
  • Why do companies split their stocks?
  • What is a stock split?
  • What is a stock split?
  • Why do companies split their stocks?
  • Why do companies split their stocks?
  • Can fractional shares make stock splits redundant?
  • Is a stock split good?

    You cannot conclusively prove that a company is doing well just because it has split its stocks. Stock splits are done when a company feels that its share price has reached a certain level where investors in general are finding it unaffordable, thereby affecting its liquidity.

  • Why would a company split its stocks?

    As explained above, a company might split its stocks to lower its share price to a more comfortable range for investors to trade easily, boosting the overall liquidity of the stock.

  • Do you lose money if a stock splits?

    No. You don't lose any money post a stock split. It is just that the share gets split into the said ratio without affecting an increase or decrease in the share price.

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